Charter Acquires Two Texas Hospices

Charter Health Care Group has acquired two providers in Texas, Genesis HospiceCare and Saints Hospice, for undisclosed amounts. Charter is a portfolio company of the private equity firm Pharos Capital Group. The two transactions mark the second and third acquisitions for Charter this month.

Charter has been focused on expansion in Texas markets, due to strong demographic tailwinds in the state, CEO Steve Larkin told Hospice News. These efforts include its hospice business as well as the company’s range of other senior care services, which may benefit from the growth of Medicaid managed care in the Lone Star State.

“Charter remains a company that is really focused on at-risk markets and partnering with at-risk providers,” Larkin said. “We’re really excited about where we think Texas is headed, and more importantly, what the clients that are in the health systems and medical groups are looking for.”

Charter provides a range of senior care services that includes hospice, home health, complex care management and palliative care, among others. They care for more than 5,000 patients annually in six states.

Demographic tailwinds have been fueling a thriving hospice market in Texas. The Lone Star State has the third largest elderly population in the nation, according to the Texas Demographic Center, a state institution. The number of Texans 65 or older grew by 49.5% between 2000 and 2014. Only California experienced a higher rate of increase among their senior population.

Texas ranks 15th among the states in hospice utilization, with 52.8% of Medicare decedents electing hospice in 2018, according to the National Hospice & Palliative Care Organization. Utah had the highest rate of utilization at 60.4%.

The two new transactions mark a total of nine acquisitions for Charter during the past two years, and their growth activity is unlikely to slow down in the near term. Earlier this month the company purchased San Antonio-based Generations Hospice Care. In addition, Charter recently bought Providence Home Health & Hospice, also in Texas.

Last October the company purchased Vitality Home Healthcare in Denver and Salt Lake City-based Heartwood Home Health & Hospice. In March 2020, Charter acquired St. Luke’s Home Hospice in Las Vegas and Phoenix-based Arizona Select Hospice. Both of those providers were part of the VeraCare Hospice system.

Charter in February acquired Serene Care Hospice in Omaha, Neb. The company also purchased Omaha-based home health company Physmed from the same owner.

Financial terms for each of these transactions were confidential.

Charter is likely to close additional transaction before year’s end and into 2022.

“Genesis HospiceCare and Saints Hospice have established themselves as quality providers of end-of-life care,” said Larkin. “We are fortunate to be able to welcome them into our company as we broaden our Texas service area.”